KPMG 2024 Life Sciences CEO Outlook

This recent KPMG report explores the perspectives and priorities of life sciences CEOs amid economic and geopolitical uncertainty, focusing on growth strategies, digital transformation, ESG goals, and workforce challenges. Excerpts from the report

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While economic and geopolitical uncertainty remain, life sciences CEOs are confident that their organisations can outgrow the industry and the economy. One fifth expect to see impressive growth earnings growth above five per cent and one third expect headcount growth of six per cent or more.

To deliver that, they expect to drive growth both organically and inorganically. In part, our survey reveals that CEOs expect new technologies-generative AI in particular-to help unlock new growth and innovation without increasing costs or talent requirements. They are hoping new technologies will help them to improve R&D, drive productivity and enhance efficiency. Yet they are also struggling with a number of challenges that are slowing progress. ESG and sustainability is another area where CEO ambition and ability are falling out of alignment. Life sciences CEOs clearly recognise the importance of meeting their ESG objectives and understand the impact failure would have on public trust. But they say they face challenges keeping up with shifting stakeholder expectations and worry they might miss their goals.

A common theme across both areas and on its own is talent. CEOs say they lack the talent to deliver on the benefits of generative Al. And they say they do not have the capabilities required to achieve their net zero goals. Most say they struggle just to replace retiring employees.

In this environment, life sciences CEOs will need to remain agile, make bold decisions and act with integrity. The following chapters explain why.

Growth and prosperity

Life sciences CEOs are feeling bullish about their growth prospects. In our survey, 79 percent of CEOs say they are confident in the growth prospects of their company-up 10 percentage points from this time last year. Yet they are increasingly concerned about the health of the industry with just 67 per cent voicing confidence this year versus 80 per cent last year.